The heat is on in business-as-usual Britain
Brexit Secretary accepts short-term risks of leaving the EU but maintains the UK will be better off out
THE Cabinet was last night divided over how Britain will fare after a nodeal Brexit as the Government published two dozen papers setting out the risks to the UK.
Moments after Dominic Raab, the Brexit Secretary, suggested most people would not even notice its impact, Philip Hammond, the Chancellor, warned that leaving the EU without a deal would have “large fiscal consequences” for Britain.
Mr Hammond disclosed he was planning to publish a new version of controversial analysis first put out in January that found a no-deal Brexit would cost the economy £80 billion and lead to tax rises or spending cuts.
Yet hours earlier, Mr Raab had played down concerns about a no-deal, saying: “I am absolutely clear that the UK will be better off outside of the EU in any scenario in the long-term but I recognise the risks in the short term.”
The row overshadowed the Government’s publication of 24 technical papers detailing the risks to the UK of a no-deal Brexit. Sixty more papers covering all parts of the UK economy will be published between now and the end of next month.
Mr Raab described the papers as “practical and proportionate” advice in the event that the UK left the European Union without securing a deal.
Credit cards
Online shoppers and British holidaymakers could face higher credit card fees. The papers warn that “the cost of card payments between the UK and EU will likely increase” in the event of a no-deal Brexit.
This would hit millions of Britons who go on holiday to the Continent every year, as well as customers in Britain who buy products online from suppliers based in EU countries.
The rise could lead to the return of the once-popular travellers’ cheques for British tourists going on holiday to countries within the EU.
Medicines
Stockpiling of medicines ahead of a nodeal Brexit will be investigated by Government inspectors. The reports say that pharmaceutical companies should therefore ensure they have an additional six weeks supply of medicines in the UK on top of their own normal stock levels.
But any over-ordering by hospitals, doctors’ surgeries or local chemists is strictly banned.
In a letter to all NHS organisations last night, Matt Hancock, the Health Secretary, said: “Hospitals, GPS and community pharmacies throughout the UK do not need to take any steps to stockpile additional medicines beyond their business-as-usual stock levels.
“There is also no need for clinicians to write longer NHS prescriptions.
“Local stockpiling is not necessary and any incidences involving the over-ordering of medicines will be investigated and followed up with the relevant chief or responsible pharmacist directly.” The UK would continue to accept new medicines that have been tested in the EU, the papers add.
Customs duties
British companies will be required to pay customs duties on all EU imports after a no-deal Brexit.
The papers warn that “there would Dominic Raab, the Brexit Secretary, finds that delivering his speech is thirsty work be immediate changes to the procedures that apply to businesses trading with the EU. It would mean that the free circulation of goods between the UK and EU would cease.” They go on to say that “this means customs declarations would be needed when goods enter the UK (an import declaration), or when they leave the UK (an export declaration).
“Separate safety and security declarations would also need to be made by the carrier of the goods” – such as the haulier or airline.
Low-value parcels from the EU would also no longer be eligible for VAT relief.
Humanitarian programmes
British charities that are funded with European Union grants and cash would have to terminate projects “early and abruptly” in the event of a no-deal Brexit.
The papers warn that the termination of EU funding “would leave organisations with existing grants with no other option but either to terminate projects early and abruptly, with high extraction costs and negative programmatic consequences, or to finance the remainder of the programme themselves.
“This risk is discouraging organisations from bidding entirely, and has had a significant impact on UK organisations’ access to ECHO [European Civil Protection and Humanitarian Aid Operations] funding for several months.
“They are losing access, both to new grants, and to grants which they have been successfully implementing for years.”
Organic food
Britain will have to produce its own labels for organic produce to replace EU labels in the event of a no-deal Brexit, the papers say.
“Defra has commissioned research on organic logos used worldwide which will provide evidence for developing any future UK logo.” British companies would only be able to export to the EU if they are certified by an organic control body and recognised by the EU.
Sperm shortages
British men could have to produce more sperm to meet a shortfall in commercial imports which are destined for Uk-based sperm banks from Denmark.
The papers say: “The UK imports donated sperm, primarily from commercial sperm banks in the USA and Denmark.
“Approximately 4,000 samples were imported from the USA and 3,000 samples
‘Hospitals, pharmacies and GPS throughout the UK do not need to take any steps to stockpile medicines’
‘Manufacturers will need to ensure tobacco products will be labelled with the new picture warnings’
from Denmark in 2017, as well as a small number from other EU countries.”
Cigarettes
Britain will need new picture health warnings on cigarette packets because the copyright to the images are owned by the EU.
The papers say that after a no-deal Brexit “manufacturers will need to submit information on the new systems for any new products that they wish to sell in the UK and introduce new picture warnings for tobacco products as the copyright for the existing picture library is owned by the European Commission.
“Manufacturers will need to ensure that tobacco products which include picture warnings produced from Exit Day onwards will be labelled with the new picture warnings.”